Game model and empirical analysis between enterprise and intermediary in faking accounting information
Ping Shi · Journal of Chang'an University · 2004
Enterprise and intermediary are the two main parties in determining the quality of information. In China, because of the over-slight punishment to the false accounting information offerers, their revenue is larger than violation cost. Thus, collusion is the rational choice to the two parties with the property of economic man. So, the most important approach of dealing with the financial disinformation is to reinforce the punishment to the false information disclosers.